stock markets and economic growth of india - a study on

International Research Journal

Vol. 7(4), 21-27, April (2018)

International Science Community Association

Review Paper

Stock markets and economic growth of India

M. Madhuri Devi1Dept. of Commerce, Bhilai Mahila

2Pt. Ravishankar Shukla University, Raipur, CG, India

AvailableReceived 15th February

Abstract

The two fold policies of Indian economic system i.e. fiscal and monetary policy has been resulted into the efficient survival

of economy of India after the inheritance of almost

NEP (liberalization, privatization and globalization) later on. Stock market is the most promising sector for raising the

financial system of the Indian economy. After the phase of liberal

competing with the economies of foreign countries. After the commencement of the stock market in the year 1875,

contributed significantly towards strengthening of the economy by proving as an

investors. Various indices of the stock market has presented as an effective tool for the purpose of measuring developments

of the economic performance. Frequency of financial crisis over India has affected adversely on the

resulting into risks and uncertainties of the stock market. But CAPM, APT,

management tools of stock market which has driven NIFTY,

changes had astonished the expansion of the Indian economy with the aspects like real estates, equities, bonds and

debentures. Gross Domestic Product is an important indicator of growth of an economy which has observed that the

recently developing economies (BRIC) countries are getting more powerful than the countries which have a strong

economic power traditionally such as economies of US and Germany. It has been predicted that the position of Indian

economy will be at the third largest level among the

appreciable aspect of the financial system which is a highly contributing factor for the economic growth. It has become a

magnificent job for new researchers to focus towards stock market a

ascertainable studies already exists in this particular field. This research paper is an effort

stock market developments in the growth of Indian economy. The secondary data source

BSE, old as well as recent researches studies has been adopted for this paper in order to explore some new horizons of this

aspect of the economy.

Keywords: Stock market, stock market developments, market capitalization,

BSE.

Introduction

The financial sector of India has experienced a convincing

anatomical changeover from the beginning of Indian economic

reforms since 1990s which improvised the

financial balances that enabled India transition from inward

looking and protectionist one to fully integrated in the world

trading system.

The capital market of India has been asssigned

state after the LPG policy and stock market lead a

role in financing corporate industries, encouragement

erpreneurship, mobilization and allocation of resources in order

to promote growth of economy. The Bombay Stock exchange

has established in the year 1875 with the specific objective of

taking financial industry of India to new heights and its

Journal of Social Sciences___________________________________

Association

tock markets and economic growth of India - a study on impact of market

capitalization on GDP

M. Madhuri Devi1 and Anjali Hinduja

2*

Dept. of Commerce, Bhilai Mahila Mahavidyalaya, Bhilai, CG, India

Pt. Ravishankar Shukla University, Raipur, CG, India

[email protected]

Available online at: www.isca.in, www.isca.me February 2018, revised 4th April 2018, accepted 12th April 2018


after the inheritance of almost collapsed economy from the British Regime which was assisted by the


financial system of the Indian economy. After the phase of liberalization stock market has proven as an effective tool for

competing with the economies of foreign countries. After the commencement of the stock market in the year 1875,

contributed significantly towards strengthening of the economy by proving as an emerging platform for savers and


of the economic performance. Frequency of financial crisis over India has affected adversely on the

resulting into risks and uncertainties of the stock market. But CAPM, APT, Portfolio diversification acted as effective risk

management tools of stock market which has driven NIFTY, SENSEX towards the growth and its rapid and unpredicta



omies (BRIC) countries are getting more powerful than the countries which have a strong


economy will be at the third largest level among the globe after 2035. Stock market with its recent developments is an


magnificent job for new researchers to focus towards stock market aspects for the research works. A series of

ascertainable studies already exists in this particular field. This research paper is an effort to determine the contribution of

stock market developments in the growth of Indian economy. The secondary data sources such as bulletin reports of NSE,


Stock market, stock market developments, market capitalization, Indian economy, economic growth, NSE,

The financial sector of India has experienced a convincing

anatomical changeover from the beginning of Indian economic

reforms since 1990s which improvised the economical and

financial balances that enabled India transition from inward

looking and protectionist one to fully integrated in the world

The capital market of India has been asssigned quite governing

state after the LPG policy and stock market lead a significant

role in financing corporate industries, encouragement

erpreneurship, mobilization and allocation of resources in order

to promote growth of economy. The Bombay Stock exchange

as established in the year 1875 with the specific objective of

taking financial industry of India to new heights and its

enlargement at the same time Indian economy was facing the

competition of financial standards of the international market.

With innovative strategies and policies of BSE, the development

phase started. At present there are 23 stock exchanges are

running over India with appreciable infrastructure and great

functioning among which the leading exchanges are NSE and

BSE. Initiatives were taken and policies were formed during 80s

ensuring the financial stability, abstaining excessive fluctuations

and volatality in intrest rates without chocking availability of

credit to various sectors.

This moderated the threats resulting from deregulation a

globalisation of Indian market of finance which tends to assist

the sectors of the economy by allocating the scarce resources in

an effective way1.

Sciences______________________________________ ISSN 2319–3565

Int. Res. J. Social Sci.

21

study on impact of market


collapsed economy from the British Regime which was assisted by the


ization stock market has proven as an effective tool for

competing with the economies of foreign countries. After the commencement of the stock market in the year 1875, it has

emerging platform for savers and


of the economic performance. Frequency of financial crisis over India has affected adversely on the financial industry

Portfolio diversification acted as effective risk

SENSEX towards the growth and its rapid and unpredictable



omies (BRIC) countries are getting more powerful than the countries which have a strong


globe after 2035. Stock market with its recent developments is an


spects for the research works. A series of

to determine the contribution of

s such as bulletin reports of NSE,


Indian economy, economic growth, NSE,

enlargement at the same time Indian economy was facing the

competition of financial standards of the international market.

ive strategies and policies of BSE, the development

phase started. At present there are 23 stock exchanges are

running over India with appreciable infrastructure and great

functioning among which the leading exchanges are NSE and

n and policies were formed during 80s

ensuring the financial stability, abstaining excessive fluctuations

and volatality in intrest rates without chocking availability of

This moderated the threats resulting from deregulation and

globalisation of Indian market of finance which tends to assist

the sectors of the economy by allocating the scarce resources in

International Research Journal of Social Sciences___________________________________________________ ISSN 2319–3565

Vol. 7(4), 21-27, April (2018) Int. Res. J. Social Sci.

International Science Community Association 22

Thereafter SEBI came into existence as the top regulating

authority tending to ensure disclosure and transparancy. As per

recent trends the expansion and diversification of the stock

market activities with the modernised technical advancements is

highly appreciable with the usage of electronic medium of

transactions and trading in recent years and thus after coping

with the adversities of the factors like demonetisations and GST,

the stock market is positively influencing the good resource

allocation, increase over national income as well as providing

financial assistance to the corporate sectors through funds and

incentives and therefore paving a way to the rebuilding growth

of economy in the form of growth of GDP rates which are

estimated to be more high in upcoming quarters of the financial

year.

Review of literature: It is a widely debated topic in the

researching field that the growth of an economy is driven by its

financial market or not which has promoted excellent factual

studies.

Pardy in his generative work Institutional Reform in Emerging

Securities Markets propounded that the capital markets are

tremendous factors of channelizing savings of domestic sectors

into the funds allocation to the deficit business units in countries

which are less developed2.

Equity markets and growth: Cross country evidence on timing

and outcomes measured the developments of the stock markets

on the basis of various parameters and argued the significant

relation between economic growth and developments of stock

markets with respect to emerging economies of 47 countries3.

Stock market development and economic growth: The case of

selected African countries have found a positive and significant

influence of the stock markets on the growing factors of

economies of the countries which comes under the category of

economy with upper middle income4.

Correlation and causality between Stock Market and Macro

Economic Variables in India: An Empirical Study revealed that

stock market can affect positively to economy but do not affect

much strongly to the real growth of GDP as there are only 2%

of the Indian population exists who are the investors of the stock

market5.

Anju Bala in her research paper “Indian Stock Market – Review

of Literature” has examined that the liquidity of stock market

has widely affected by the corporate listings on the stock

exchanges.

Elimination of risk element is not possible with the functioning

of the financial markets as fiscal deficit is prevalent but it can

compete over with opportunities by finding out the volatilities

and variations in the trends6.

Naik and Padhi had observed the positive contribution of the

Indian financial sector towards the relative growth of market

trends and the economy7.

Effect of stock market development on economic growth of

major South Asian and East Asian economies: A comparative

analysis revealed in the South Asian region economies the stock

market is affecting the economic growth more significantly8.

Objectives of the study: The primary objective of this research

paper is to determine the impact of Indian stock market

developments in the economic growth of the country. Under this

study the critical appraisal of economic growth in relation with

developments of the stock market and its resulting phenomenon

on the economic growth for upcoming years estimations have

been focused on and studied: i. To know the development trends

of stock market of India. ii. To know the economic growth of

the country is driven by the developments of the stock market or

not.

Methodology

Secondary sources of data such as reports and bulletins of RBI,

various stock exchanges Journals, websites of financial express

and economic times and various news stand has been used.

Reference contains links and websites for all the sources which

are used in the research. Market capitalization (MC), Total

value traded ratio (TVT) are used as independent variables for

reflecting developments of the stock market and Real Gross

Domestic Product ratio is used as variable of economic growth

of the country.

This study used data from the year 2000 to 2017 third quarters

to find out the impact of developments of stock market on the

economic growth of India taking the Indian market

capitalization to GDP (%).

The Indian economy was introduced with a number of financial

reforms in the period of 1980s with Globalization for the

purpose of attracting equity investment from the foreign

countries. For the implementation of new economic policy in

the developing countries it is quite essential to channelize the

funds from surplus units to the deficit units which can be done

through the stock market. In the Indian context the stock market

has played a vital role in the growth of economy to an extent.

Results and discussion

Stock market is a market that provides a framework for the

public companies to get their shares listed for the purpose of

trading. Stock market is subdivided into the primary market and

the secondary market.

Primary market facilitates the companies to raise funds from the

general public through initial public offering9. In stock

exchange stocks and other securities can also be traded through

stock brokers.

It is essential for stock to get listed on an exchange in order to

be bought and sold. Therefore it can be said a meeting place for

all buyers and sellers. Bombay Stock Exchange and the National

Stock Exchange are the main stock exchanges of India.

International Research Journal of Social Sciences__

Vol. 7(4), 21-27, April (2018)


Table-1: Main Stock Exchanges in India.

National stock exchange

Bombay Stock exchange

Calcutta stock exchange

Cochin stock exchange

Multi commodity stock exchange

Derivatives exchange

OTC exchange

Pune stock exchange

Interconnects exchange

Main indices of tracking stock markets: i.

shows overall performance of a stock market, ii. Sectoral

shows performance of a certain sector in economy like

technical, construction, finance, consumer products etc.

Figure-1: 1800s‘

1800's

•1854:Dalal street fixed as permanent location

•1875: BSE established as the native share and stock brokers association

Sciences___________________________________________________

Association

i. Benchmark Index-

shows overall performance of a stock market, ii. Sectoral Index-

shows performance of a certain sector in economy like

technical, construction, finance, consumer products etc.

Back in the 1990’s, every city had an Stock Exchange (Calcutta

Stock Exchange, Bombay Stock Exchange, Bangalore Stock

Exchange) etc. NSE broke the barrier of trading region

allowing traders to trade across regions which served as a big

boon to the trading community who instead of restricted to the

same region spread over widely, thereby giving them a bigger

exposure10

.

SENSEX and NIFTY: There are some of the bases such as

capitalization of market, type of industry a company belongs to

and size and number of the companies upon which the

companies are classified to form an Index. Index are the groups

formed by some of the common trait

the listed companies of the stock exchanges. BSE SENSEX (a

group of 30 stocks) and BSE 500 (a group of 500 stocks) are

fine examples of such Indexes. There are many such indices and

are not limited to only SENSEX and the NIFTY. Nif

major index and similar is the BSE Small cap and BSE Midcap.

Index values are calculated by using the value the grouped

values of the stocks. Change in the price of the stocks thus

affects the index values also11

. Therefore an index is taken a

the indicator of market changes.

Periodical Developments in Indian stock markets since 1800 .

Figure-2: Stock market growth indices.

stock brokers association

1900's

•1956: BSE became the 1st stock exchange recognized under securities contract act

•1993: NSE recognized as the stock exchange

2000's

•2000: Commencement of internet trading at NSE

•2001: BSE commences derivatives trading

Market Capitalization

(BSE smallcaps NSE midcap)

Sector/ Industry (BSE bankex

CNX IT)

Broad Market (BSE 500, CNX

100)

Free Float Capitalization

(BSE Sensex, CNX

Nifty)

___________ ISSN 2319–3565


23

Back in the 1990’s, every city had an Stock Exchange (Calcutta

Stock Exchange, Bombay Stock Exchange, Bangalore Stock

broke the barrier of trading region-wise by

allowing traders to trade across regions which served as a big

boon to the trading community who instead of restricted to the

same region spread over widely, thereby giving them a bigger

There are some of the bases such as

capitalization of market, type of industry a company belongs to

and size and number of the companies upon which the

companies are classified to form an Index. Index are the groups

formed by some of the common traits of companies among all

the listed companies of the stock exchanges. BSE SENSEX (a

group of 30 stocks) and BSE 500 (a group of 500 stocks) are

fine examples of such Indexes. There are many such indices and

are not limited to only SENSEX and the NIFTY. Nifty Bank is a

major index and similar is the BSE Small cap and BSE Midcap.

Index values are calculated by using the value the grouped

values of the stocks. Change in the price of the stocks thus

. Therefore an index is taken as

2000: Commencement of internet trading at

2001: BSE commences derivatives trading




Some of the important Indian indices are: i. Benchmark indices

- BSE SENSEX and NSE Nifty, ii. Sectoral indices - BSE

BANKEX and CNX IT, iii. Market capitalization based indices

- BSE Smallcap and BSE Midcap, iv. Broad-market indices -

BSE 100 and BSE 500.

Recent develpoments and newly introduced changes to

S tock Market: i. Stock market recent developments are related

with some of the IT developments easing the stock markets are:

subscriptions such as cellular mobiles, telephones, broad bands,

wired and individual internet usage etc. ii. Stock market integral

developments are: Equity market turnover, stock market value

traded to GDP market capitalization to GDP, accessing with

ease to local equity market.

Developmental trends of Indian Securities market: Corporate

securities market, SEBI act 1992, Screen based trading,

Reduction of trading cycle, Equity derivatives, Risk

management, Short selling, Cross margining, Research in

securities market, Testing and certifications, Demutualization,

Dematerialization, Clearing corporation, Investors protection,

Globalization, Launch of VIX 2, Direct market access, Launch

of (lending and borrowing schemes, currency futures, intrest

rate futures), ASBA and ICDR regulations 2009.

Economic Growth: Economic growth refers to the incremental

inflation adapted goods and services values prevalent in the

market over a time period in the economy. Usually it is

measured in the terms of increasing (%) rate in real GDP, as

GDP is important indicator of strength of a country and a key

indicator of the economic growth.

India GDP Annual Growth Rate: Through the view of

occupational structure, about 60% of the total GDP contribution

has been observed from the most fast growing territory sector of

the economy which provides social as well as business assisting

services (financing, insurance, banking, real estate, trade, hotels,

transport, telecom, communication etc.). The primary sector

consisting of genetic and extracting industries like forestry,

agriculture, mining, fishing contributes 12% in the GDP and

employees around 60% of the labor force. Manufacturing and

construction accounts for 15% in total GDP and other 5% is

contributed through water and gas supplies12

.

In the recent context of year 2017 the state of expansion of the

Indian economy was 6.3 percent in the second last quarter of

2017 and a very low as 5.7 percent in the previous quarter

noticed as the lowest percent in last three years while the

estimated market expectations was 6.4 percent. Both the sectors

of economy i.e. public and private sector showed a slowdown in

the growth of inventories and investments. The averaged GDP is

determined 6.12% in the period of year 1951 to 2017 in which

the highest GDP as 11.40% has been recorded in the 2010 first

quarter and as low as -5.20% in the fourth quarter of the year

1979.

Figure-3: India GDP Annual Growth Rate (Quarterly) Year 2015 to 2017

13.

6

7.47

6.8

9.2

6.1

7.67.9

5.7

8.4

7.5

6.3

Year 2015 Year 2016 Year 2017

Jan-March April-June July-Sep Oct-Dec




Interpretation: The above graph shows India’s annual GDP

growth rate from the financial year 2015 to financial year 2017

on the quarterly basis predicting as the 6.3% GDP growth rate in

the last quarter of financial year 2017.

Table-2: Chart showing 10 years periodical GDP growth rates

with estimates till financial year 202114

.

Years GDP Growth rates (%)

2012 5.46

2013 6.39

2014 7.51

2015 8.01

2016 7.11

2017 6.72

2018* 7.37

2019* 7.8

2020* 7.93

2021* 8.1

Interpretation: The above table shows the raised growth in

GDP rates from the year 2012 to 2016 but a slight downfall in

2017 as well as estimate to rise up from the year 2018 and at the

peack of this decade in 2021 (*refers to estimates).

Stock Market and Economy: There exists a two way

relationship of stock market and economy.

Way how the developments of the stock market affects

economy of India: i. Consumer: “wealth effect” applies here as

increase in the price of stocks also increase the consumers

wealth resulting into the higher spending level. ii. Business:

“tobin q effect” applies here as the corporate sector also raise an

increased level of funds per share to finance the investment

projects if the stock market touches a higher price extent15

.

Beside several other factors, Stock markets are the significant

factors that tends to promote the economic growth of the

country. Rate of interest also affects the economy because

borrowing costs will increase with the higher rate of interest.

Falls in the interest rates can stimulates the growth of economy

as slowing down of the business investments and consumers

spending reduces economic growth.

Role of Stock Markets in the Economic Growth of India are

as follows: The role of stock market in the process of economic

growth is quite significant as the stock market is the creator of

liquidity in the economic flows. Liquidity of the financial

market instruments was an enhancing aspect of innovative field

during the earlier face of Industrial Revolution in the India.

Interpretation: The Table-3 shows the changes and percentage

changes in the SENSEX values over the last decade with

relation to its impact on GDP as market capitalization GDP

ratio.

Table-3: The changes in stockmarket performance on the basis of sensex values of period of 10 years with (%) changes and market

capitaisation GDP ratio16

.

Financial Year Change in SENSEX Value % Change Midcap/GDP Ratio Below/Above average

FY07 1792.14 15.89 83 Above

FY08 2572.34 19.68 103 Above

FY09 -5918.12 -37.87 55 Below

FY10 7625.78 77.01 95 Above

FY11 1752.6 9.91 88 Above

FY12 -2016.19 -10.38 71 Below

FY13 1431.57 8.23 64 Above

FY14 3521.52 18.67 66 Above

FY15 5511.05 24.55 81 Above

FY16 -2918.28 -10.33 69 Below

FY17 4350.86 17.22 80 Above

International Research Journal of Social Sciences__

Vol. 7(4), 21-27, April (2018)


Figure-4: Market capitalization GDP ratio (including all stock exchanges of India)

Interpretation: The above figure represents the percentage of

market capitalization to the GDP ratio of a period of seventeen

years from the year 2000 to year 2017.

Conclusion

The schedule of financial reforms of capital market reform was

an integral part of Indian economy since the formation of

planning commission taken place. It is generally accepted that

the advancement of the stock market is recognized vital to

national financial extension as it: i. Provides an additional

channel for mobilizing and encouraging private economical

savings. ii. Arrange productivity of the investments through

allocation of fundamental capital. iii. Access managerial control

through the market for commercial discipline. Indian stock

markets have grown widely in terms of market turnover ratio

andcapitalization18.

The financial and money market of India has strengthen over a

years. The numbers of stock exchanges rise out of 8 in 1971 to 9

in 1980 to 21 in 1993 and further to 23 as on year 2000. The

number of listed companies also increased over the identical

time 1,599 to 9,871 in the year 2000. BSE market capitalization

GDP ratio at current market figure also developed in large from

around 28 percent in thenew1990s to 45 percent at the end of

the nintees after marking a fall in certain interceding generation.

In the terms of market capitalization India ranked twenty

over the globe. 19th in the change of total value traded and

second in the terms of listed domestic companies. Though the

financial and money market of India established more than a

century ago, it continued to be quite passive from the post

independence periods of early nintees with only 4 percent

capitalization ratio (market capitalization to GDP)

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005

3223 25

4654

67

Sciences___________________________________________________

Association

Market capitalization GDP ratio (including all stock exchanges of India)

represents the percentage of

ratio of a period of seventeen

The schedule of financial reforms of capital market reform was

an integral part of Indian economy since the formation of

planning commission taken place. It is generally accepted that

the advancement of the stock market is recognized vital to

ncial extension as it: i. Provides an additional

channel for mobilizing and encouraging private economical

ii. Arrange productivity of the investments through

allocation of fundamental capital. iii. Access managerial control

commercial discipline. Indian stock

markets have grown widely in terms of market turnover ratio

The financial and money market of India has strengthen over a

years. The numbers of stock exchanges rise out of 8 in 1971 to 9

21 in 1993 and further to 23 as on year 2000. The

number of listed companies also increased over the identical

time 1,599 to 9,871 in the year 2000. BSE market capitalization

GDP ratio at current market figure also developed in large from

t in thenew1990s to 45 percent at the end of

the nintees after marking a fall in certain interceding generation.

In the terms of market capitalization India ranked twenty-first

over the globe. 19th in the change of total value traded and

ms of listed domestic companies. Though the

financial and money market of India established more than a

century ago, it continued to be quite passive from the post-

independence periods of early nintees with only 4 percent

alization to GDP)19

.

However during last two decades the activities of the stock

market have undergone wide changes with the increased

demand of the capital which has been resulted into the

improvement and developments in the stock markets. It can be

recognized that till the nintees institutional term lending acted as

the primary source of Industrial finance in India. The financial

institutional’s system of raising money through government

guaranteed bonds provided as a cushion to the corporates to

absorb relatively high risks of implementing new projects. It is

overwhelmingly concluded that that the Indian stock market

with its continuing developments is acting as an engine for the

economic growth of the country and the market regulators and

economic policymakers should focus their attention towards

establishing and sustaining a dynamic capital market in order to

foster a sound and continued economic growth.

References

1. Madhvi (2014). An evaluating study of Indian Stock

Marker Scenario with reference to its growth and inception

trend attempted by Indian investors with relation to LPG.

Galaxy International Interdisciplinary Journal GIIRJ

112-138

2. Pardy R. (1992). Institutiona

Securities Markets. Policy Research Working Papers

(Financial Policy and Systems) No. 907, World Bank,

Washington, D.C.1992

3. Rousseau P.L. and Wachtel P. (2000). Equity markets and

growth: Cross country evidence ontiming and outcomes.

Journal of Banking and Finance

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

67

87

150

54

98 97

56

6961

77

Market Cap To GDP Ratio

___________ ISSN 2319–3565


26

Market capitalization GDP ratio (including all stock exchanges of India)

17.

However during last two decades the activities of the stock

market have undergone wide changes with the increased

demand of the capital which has been resulted into the

improvement and developments in the stock markets. It can be

nized that till the nintees institutional term lending acted as

the primary source of Industrial finance in India. The financial

institutional’s system of raising money through government

guaranteed bonds provided as a cushion to the corporates to

relatively high risks of implementing new projects. It is

overwhelmingly concluded that that the Indian stock market

with its continuing developments is acting as an engine for the

economic growth of the country and the market regulators and

cymakers should focus their attention towards

establishing and sustaining a dynamic capital market in order to

foster a sound and continued economic growth.

(2014). An evaluating study of Indian Stock

Marker Scenario with reference to its growth and inception

trend attempted by Indian investors with relation to LPG.

Galaxy International Interdisciplinary Journal GIIRJ, 2,

Pardy R. (1992). Institutional Reform in Emerging

Policy Research Working Papers

(Financial Policy and Systems) No. 907, World Bank,

Rousseau P.L. and Wachtel P. (2000). Equity markets and

growth: Cross country evidence ontiming and outcomes.

ournal of Banking and Finance, 24(12), 1933-1957.

2014 2015 2016 2017

77 73 6980




4. Adjasi C. and Biekpe N. (2006). Stock market development

and economic growth: The case of selected African

countries. African Development Review, 18(1), 144-161.

5. Sahu Chandra Naresh and Dhiman H. Deepinder (2011).

Correlation and causality between Stock Market and Macro

Economic Variables in India: An Empirical Study.

International Conference on E- Business, Management and

Economics, 3.

6. Bala A. (2013). Indian Stock Market-Review of Literature.

TRANS Asian Journal of Marketing and Management

Research, 2(7), 67-79.

7. Levine R. (1997). Financial development and economic

growth: Views and agenda. Journal of Economic

Literature, 35(2), 688-726.

8. Karim Saba (2017). Effect of stock market development on

economic growth of major South Asian and East Asian

economies: A comparative analysis. Journal of Business

Studies Quarterly, 8, 330-356.

9. Masoud N.M. (2013). The impact of stock market

performance upon economic growth. International Journal

of Economics and Financial Issues, 3(4), 788.

10. Beck T. and Levine R. (2004). Stock markets, banks, and

growth: Panel evidence. Journal of Banking & Finance,

28(3), 423-442.

11. Rajkumar Prabhakar K. and Madhvan G. (2005). A Review

of the impact of Reforms on Economy and Stock Markets

in India. Acme Intellects of Social Journal of research in

Management, Social science and Technology ISSN2320-

2939, 9(9), 1-12.

12. Managing economy with financial market (2018)

(http://www.capitaline.com) accessed on 2 december 2017

13. India GDP growth rate (2017) (https://www.india.gov.in.

mospi.ni.in) accessed on 05 Jan 2018

14. GDP estimates Indian Economy (2018) (https://www.

statistica.com) accessed on 06 Jan 2018

15. Srinivasan P. and Prakasam K. (2014). Stock Market

Development and Economic Growth in India: An Empirical

Analysis. MPRA Paper, 21.

16. Stock market capitalization ratios of India (2017)

(https://www.bloomberg.com) accessed on 28 Dec 2017

17. India market cap ratios last 20 years (2017)

(https://www.india.gov.in.mospi.ni.in) accessed on 05 Jan

2018

18. Abubakar A.B. (2016). Economic Growth Impact of Indian

Stock Market: An Econometric Investigation. pacific

business review international, 8(12), 128-134.

19. Indian economic indicators (2017) (http://thehindu.com/

business/economy/economic growth) accessed on 16

November 2017

stock markets and economic growth of india - a study on

Documents